Centum Investment Limited is expected to sell its entire soft drinks business to Coca Cola Beverages Africa (CCBA).
The firm has entered into an agreement to sell their Almasi Beverages and Nairobi Bottlers Limited at around Sh19.5 billion, the amount that will be settled within the current financial year.
According to Centum Investment Managing Director Mr James Mworia, this move is aimed at moving towards more cash generating business.
“Our focus is shifting from asset growth which has until now been anchored on robust economic growth. We are now shifting focus towards more cash generative businesses as opposed to relying on private equity (PE) exits,” Mr. Mworia told investors on Wednesday.
Centum will use some of the cash from this transaction to settle their debts, which stands at around Sh.7.5 billion, while the remaining cash will be used ii other business ventures.
Centum which is exiting the beverage business realized a 48 percent increment in their net profit to Sh4.2 billion in the last financial year.
According to Mr Mworia, land sales attrivuted greatly to this increment in profit from the previous year’s profits.
“We made some portfolio exits like in GenAfrica which closed this year.Also, land sales from real estate side and revaluations on property business contributed to the rise,” said Mr Mworia.